US soyoil jumps as China cuts export incentive for competing biofuel feedstock

U.S. soyoil futures rallied 2% on Friday after China said it would cut export incentives for some products including used cooking oil, a low-cost feedstock that many U.S. biofuels makers use instead of domestically produced soyoil. China’s finance ministry said it would reduce or cancel the export-tax rebates starting next month, including some refined oil products that traders said would include used cooking oil, or UCO. The announcement was the latest wildcard for U.S. renewable fuels producers and feedstock suppliers following a presidential election win by Donald Trump, whose trade policies and domestic agenda could upend global trade flows. China’s move also comes as global supplies of vegetable oils are tightening and prices climbing, analysts said. December soyoil BOZ24 on the Chicago Board of Trade closed up 2% at 45.35 cents per pound after four days of losses that had dragged the market down from the seven-month peaks reached after the election. Still, market analysts ...